Unlocked iPhones partially bricked by update

Last night, Apple released a software update that is disabling iPhones that had been unlocked to work on any mobile network.

Earlier in the week, the company had warned could potentially damage unlocked iPhones earlier in the week. It looks like that warning has turned out to be true, as many reports from around the web have confirmed that the new 1.1.1 firmware is partially bricking unlocked iPhones.

Users that have an unlocked iPhone and update to the latest firmware update will be greeted with the "Activate iPhone" screen. The reports are suggesting a common theme: you'll be greeted with an incorrect SIM warning, even if you use the original SIM that came with the phone when you purchased it.

If you haven't unlocked your phone completely and are using the AT&T SIM provided with the phone, but have installed third party applications and custom ring tones, you will not be able to access this content.

The update brings a number of tweaks and changes including the following:

• iTunes Wi-Fi Music Store
  
• Louder speakerphone and receiver volume
  
• Home Button double-click shortcut to phone favourites or music controls
  
• Space bar double-tap shortcut to intelligently insert period and space
  
• Mail attachments are viewable in portrait and landscape
  
• Stocks and cities in Stocks and Weather can be re-ordered
  
• Apple Bluetooth Headset battery status in the Status Bar
  
• Support for TV Out
  
• Preference to turn off EDGE/GPRS when roaming internationally
  
• New Passcode lock time intervals
  
• Adjustable alert volume

While there are some nice additions to the phone's feature set in this update we'd recommend that those with unlocked phones, or those using third party applications, don't install the update at this time. The iPhone Dev Team is already working on a new version of Jailbreak to open up handsets that are stuck at the activation screen.

Being an iPhone owner myself, I think I'll be holding off on the update. I don't need the WiFi Music Store and the new features that catch my eye are the louder speakerphone and receiver volume and the adjustable alert volume. I can live without those for the time being though... In fact, I wouldn't be surprised if the iPhone Dev Team couldn't reverse engineer some of these updates without having to install the new firmware.

Got an unlocked iPhone? Share some of your favourite applications in the forums.